California-based EV maker Rivian Automotive Inc unveiled its new R2 SUV and showcased its upcoming R3 crossover on Thursday. These additions give Rivian a lineup comparable in price range to its larger rival, Tesla Inc., with the exception of the unique Cybertruck.
Rivian’s current offerings include the R1T electric truck, the R1S SUV, the smaller and more affordable R2 SUV, and a preview of the R3 crossover. The company also manufactures electric delivery vans for commercial customers.
The R1T and R1S cater to the higher end of the EV market. The R1T starts at $69,900 (excluding taxes and fees) and the R1S starts at $74,900, positioning them near Tesla’s premium offerings, the Model X ($79,990) and Model S ($74,990).
The newly unveiled R2 SUV is a smaller and more compact version of the R1S, with a starting price of around $45,000. This directly competes with Tesla’s Model Y, which starts at $43,990.
The company also showcased the R3 crossover, which will be priced below the R2 and is scheduled to begin deliveries after the R2. Similar to Tesla’s Model 3 ($38,990), the R3 will also have a performance variant called the R3X. It’s unclear whether the R3’s price will undercut the Model 3 or remain within the same range.
While Rivian now has competitive offerings for most of Tesla’s lineup (based on vehicle type and price), the Cybertruck remains unchallenged. While Rivian’s R1T truck falls within the price range of the Cybertruck’s all-wheel-drive version, it lacks the Cybertruck’s unconventional angular design and stainless steel exterior. The Cybertruck’s unique aesthetics have attracted celebrity buyers like Jay-Z and Beyoncé, and its higher-end version reaches a price point (over $100,000) not yet explored by Rivian.
Tesla CEO Elon Musk remains skeptical about Rivian’s long-term prospects. In February, he predicted Rivian’s “bankruptcy in about six quarters” based on their current trajectory. However, he acknowledged that Rivian’s product design has “not bad” potential.
Overall, Rivian’s expanding lineup and competitive pricing strategy position the company as a strong contender in the EV market, challenging industry giants like Tesla. It will be interesting to see how Rivian’s new offerings perform in comparison to Tesla’s established lineup in the coming months.
